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Fact or Fiction Content created by Petite Boutique:

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Presentation on theme: "Fact or Fiction Content created by Petite Boutique:"— Presentation transcript:

1 Fact or Fiction Content created by Petite Boutique:

2 Fact or Fiction Content created by Petite Boutique:

3 Fact or Fiction Content created by Petite Boutique:

4 Wear Sizing DOES matter Welcome to the Petite Shop Experience

5 Executive Summary The Opportunity – Investment in an upstart Petite Clothing Shop Mission/Keys To Success Marketing Plan Operations Plan Human Resources Plan Financial Plan Key Implementation Factors

6 Mission “Wear sizing does matter. Welcome to the Petite Shop Experience” Our Mission is to be the premier destination for petite women to purchase their wardrobe. Petite Shop is dedicated to providing our customers with high quality personalized service. We want to be responsive to our customers needs for well fitting trendy and classic clothing at reasonable prices.

7 Keys to Success Wear Sizing DOES matter 1. Providing petite customers with both trendy and classic clothing that provide them with excellent fit and style. 2. Offering high quality personalized service by getting to know customers on a one-on-one basis. 3. Converting customers from ‘‘just looking’’ to “I want to try this on” to a resulting purchase. 4. Generating word–of–mouth marketing through customer satisfaction. 5. Creating repeat business through customer satisfaction.

8 Strategy First Mover Advantage – size of Prince George Market (86,100) will not support a 2 nd Petite women’s store Little Direct Competition – Reitman’s Specialty Fashion –  risk of inventory obsolescence Customer power: Consumers fickle when it comes to fashion, however lack of petite sized options reduces this risk Loyalty Supplier power: low – will buy from smaller suppliers

9 Positioning vs Competition Women’s clothing Stores: Style: Varies (static, fashionable, high fashion) Fit: No or little petite sizing available Pricing: Varies (High quality & low cost) Department Stores: Style: ‘Unfashionable’, Business clothing targeted at older (>age 30) women Fit: No or little petite sizing available Pricing: Low cost The Petite Shop: Style: Fashionable yet Timeless Fit: highly customized Pricing: Higher Quality

10 Target Market Segment

11 Target Market Market Needs Clothes that fit right for women 5’’4 and smaller Selection Type Style Occasion Affordable prices High level of quality customer service Accessibility to store outside regular working hours

12 Target Market Market Trends Major US retail department stores have minimized or completely eliminated their women petite clothing departments. Sears Canada and The Bay have stated that they have no plans to downsize the category. (Canadian Business Online, 2006) Retail spending continues on an increasing trend (Statistics Canada, 2008) Several major retailers have expanded into the Prince George area a trend which is expected to continue. (City of Prince George, 2008)

13 Target Market Market Growth Plus size category is currently growing at a faster pace than petite women’s clothing. Potential increase in target market demographics through expansion and movement of companies into Prince George. Prince George turning into a transportation hub for Northern BC

14 Marketing Product & Services Price Promotion Place

15 Clothing Lines: Sizes 0-9 Trendy (Target: age 25-32) Classic (Target – age 33-45) Business Casual Pants (year round) Dress Shirts (year round) Skirts (spring/summer) Capris/Shorts(spring/summer) Dresses (summer) Chic Tops (year round) Coats (fall/winter) Cocktail dresses (year round) Business Casual Pants (year round) Dress Shirts (year round) Skirts (spring/summer) Cardigans Dresses Blouses Coats (fall/winter) Cocktail dresses (year round) See Tall Girl Shop For Style Examples:

16 Service Committed Owner/Manager that is a customer herself Getting to know customers on a one-on-one basis to determine their needs.

17 Price Average family spends $1000/yr Customer Goal: Maximize budget Mid Range $30-90 Tops $40 Pants/Skirts $50 Dresses/Jackets $90 Competitors More frequent sales promotions Key differentiator: Service vs Price

18 Promotion Grand Opening Party Radio Newspapers Targeted door-to-door flyer campaigns WORD OF MOUTH Population: 77K Most effective method!

19 Place Prince George, BC Central Business District Busy street High foot traffic High concentration of Boutique shops Close to office buildings Suburbs - 20 min drive

20 SWOT Analysis Strengths: Experience in the Retail Industry Location in the central shopping/business district Classic & Trend Conscious clothing lines Weaknesses: Lack of prior experience in running a business Limited business management knowledge

21 SWOT Analysis Opportunities Only a few stores in Prince George offer Petite wear Department stores not catering to needs of Petites Threats Only 20% of the women’s clothing market represents petite wear Several retailers are expanding into Prince George

22 SWOT Analysis Threats Cont’d: High fashion boutiques are located downtown Inability to secure sufficient financing Retail industry experiences high employee turnover Unemployment rate has increased in Prince George

23 Operations Plan The Business Alice Wood owner and part time employee Specialty Petite Boutique Quarterly communication with the Bank and potential Angel Investors

24 Operations Plan Floor Plan

25 Operations Plan Hours of operations: Monday – closed Tuesday to Wednesday – 10am to 6pm Thursday to Friday – 10am to 8pm Saturday – 10am to 6pm Sunday – 12pm to 6pm Open 300 days a year

26 Operations Plan Inventory will be ordered from Petite Clothing Manufacturers 3 times a year – aligned with the seasons Distribution centre in Vancouver License required – Business License $100 Incorporation

27 Operations Plan Planned capital budget investment Furniture & Fixtures Equipment (eg: Cash Register) Leasehold Improvement Start up inventory

28 Human Resource Plan External Expertise Bookkeeper /Accountant IT Service providers Meetings with Stakeholders Images From HR By Design, 3 Employees: Alice (full time) 1 Part time assistant 1 seasonal Human Resource Strategy Training- informal/in- house Management

29 Human Resource Plan Year12345 $ Owner-Manager Salary 36,000 37,080 38,192 39,338 40,518 Salesperson Wages 15,000 15,450 15,914 16,391 16,883 Total Salary Expense 51,000 52,530 54,106 55,729 57,401 Total Benefits 7,650 7,880 8,116 8,359 8,610 Training Program costs2021 2223 Total HR Expenses 58,670 60,430 62,243 64,110 66,034

30 Financial Plan Sales Forecast: Price: full ($54) and discounted prices ($27) Quantity: 17-22 units/day * 25 days/month Markup: 75% to 100% Average Gross Margin: 49% Most Likely Utilization: 1 st year: 65%; 2 nd year: 85%; Nominal Growth Rate: 3%

31 Financial Plan Costs and Expenses: COGS: 51% Inventory Turnover: 3 turns, average 100 days/turn Expenses: Schedule C - Startup Costs - Recurring Costs

32 Performance Comparison Liz Claiborne Jones NYRalph Lauren The Petite Shop Gross Margin % 47.8%36.36%54.48%49% Inventory Turnover 4.7x4.8x3.8x3x Average Industry Ratios: Gross Margin = 41.60% COGS = 58.40%

33 Financial Plan Summary of Projection: Sales Revenue Net Income

34 Capital Budget Total Capital Costs of $60,018 Consists of: Furniture and Fixtures - $8,000 Equipment (such as cash register) – $5,000 Leasehold improvements – $12,000 Start up inventory purchase – $33,518 Incorporation costs- $1500

35 Financing Capital Requirements- $60,018 Alice Equity- $25,000 Debt Required- $35,000 Debt Terms: 5 Year Loan, 10% interest Limited collateral from The Petite Shop Alice can use the $500k personal condo as collateral

36 Sensitivity and Break-even Analysis Appendix 4- Sensitivity Analysis Appendix 12- Break Even Analysis

37 Start up/ Implementation

38 Questions / Comments?

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